UNS (ASX) Buy out?

Originally posted by TDA ↑

Have you even read the documents, I doubt it because what you are saying isn't true at all and that article you put up looks like some computer generated program that doesn't read the details in the filings either!

Alan has simply pledged these shares to the lenders, Equities First Holdings LLC & ICG Venture Limited, until he pays the set forth amounts of principle and interest back to the lender by 31 March 2016 for EFH and Jan 16 2016 for ICG. These were caused by Valuation Events (the share price dropped) and will re-register in Alan's name once everything has been cleared up and paid. He borrowed multiple times from these guys and has share price valuations set as triggers which is why he is putting up additional shares as collateral.

Alan has not received any money and has not had some big pay day as you say he has. Is it another stuff up, yes, he has borrowed against his holdings and due to the share price performance has had to put up more of his shares as collateral against these loans.

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Reasonable comment and an error I must wear and correct. I only check in on UNS every now and then to see if I should take it off my Not Investment Grade list.

I should have said he used his shares to pay debt, but he still did receive a big fat pay-day. The cash just never hit his account, but now he has substantially less debt.

This is VERY important if UNS goes belly up or shareholders have to accept a low-ball offer from Amgen.

Four months cash, with a burn of $25m (or even half that), is not exactly an ideal position to be in, especially when you are having to put off paying bills and need to keep extending an agreement with a partner in the hopes of getting a deal done to survive. If UNS was in a sound position, they would have charged Amgen for the extensions (probably, around $US7.5m).

Yes, the share movements were all prearranged based on contingent events, but if he wanted to retain control of the shares he could have paid in cash, which he has plenty of. The interpretation remains the same. Just because he has dressed it all up in a contract doesn't make it any different.

Also, don't get me started on these sorts of lending arrangements. Remember Opes Prime? When the lender wants to recoup their money, they will, and it won't really hurt mega-rich Alan. But, it will hurt just about every other shareholder in a big way, especially retail investors, as the holding is dumped. These things are set up such that the lender has plenty of room to sell down the shares and recoup most of their money.